Mirach asks Supreme Court to let it buy Sahara assets

US-based Mirach Capital Group claims to have returned $2.625 million to Sahara Group and asked the Supreme Court to intervene and allow a sale of its assets to its “ready, willing, and able investors.”

The syndicate of five UK and US investors, which had last month made a $2 billion loan offer to embattled Sahara group chief Subrata Roy, said it had remitted the sum to the SEBI-Sahara fund Tuesday “in a move signalling the end of the proposed loan to the Sahara Group.”

Roy has been trying to raise money to secure his release on bail from Delhi’s Tihar Jail where he has been locked up there since March on the Supreme Court’s orders for failing to refund his investors.

Under a Dec 10 agreement with Sahara, Mirach Capital Group was entitled to due diligence fees related to legal, accounting and transaction related costs to be paid by Sahara, it said in a media release.

Though it had incurred expenses of $1,075,000 to date in related closing costs, Mirach said it has remitted the full amount back to Sahara in “attempting to wipe the slate clean amongst unfounded allegations” of forgery by Sahara.

The syndicate said it had remitted the funds Tuesday via mail in an effort to show the Supreme Court of India that “the group stands willing to incur costs while waiting for a fair ruling on February 20.”

The group’s Indian American Saransh Sharma had also sent a letter to SEBI, the amicus curiae, and Sahara representatives alerting them of the remittance and stating that a “notable bank would be contacting all applicable parties within the week.”

It would confirm “that blocked and earmarked funds are available for the purposes of completing the previously contemplated loan transaction, which will now be applicable towards a sale of Sahara’s assets.”

“Mirach stands ready, willing and able to close this transaction in an expedited manner should the Apex court and SEBI wish to see a swift resolution in favour of the creditors who have waited several years for some form of solace,” Sharma wrote in the letter.

‘Mirach and its syndicate of investors continue to stand ready, willing and able to execute a purchase of Sahara’s assets,” the group said.

With the Feb 20 deadline approaching, Mirach said it had asked the “Supreme Court to intervene and put an end to stall tactics by an unwilling seller, Mr. Subrata Roy.”

Mirach has made an offer on all of the assets previously involved in the loan package, which could provide Roy and his creditors relief in the form of $2.05 billion, it said.

After unsuccessfully closing 28 offers, the Group said it was asking “the Supreme Court of India to allow Mirach to purchase these assets and bring this saga to a close.”

Last week Mirach had offered three new options to bail out Sahara group – a loan after a Sahara apology for forgery allegations, acquisition of Sahara properties or permanently end business dealings.

Mirach’s original loan offer was made against Sahara group’s hospitality properties including the Plaza Hotel in New York, the Grosvenor House Hotel in London, Sahara Star in Mumbai and Aamby Valley resorts in Maharashtra. IANS